Sanford commission approves mediated settlement with FDEP, clearing path for $50M treatment loan

Sanford commissioners voted 5‑0 Aug. 25 to approve a mediated settlement that the Florida Department of Environmental Protection (FDEP) said would allow the agency to execute a construction loan agreement for a water‑treatment system to address contamination that FDEP’s December 17, 2024 report attributed to responsible parties at a 400 Reinhardt Road site.

The settlement follows a mediation held Aug. 18 and Aug. 20 and comes after FDEP issued an opinion that the migration of a plume, including 1,4‑dioxane, originated at properties identified as responsible parties. The agreement, as described at the meeting, would allow FDEP to move forward on a construction loan—contingent on available funding—that FDEP has indicated could provide roughly $50 million toward building a water‑supply treatment plant.

City attorney and outside counsel said the settlement clarifies causation and remediation approach and would clear the way for FDEP to execute the construction loan agreement and return it to the city. The city’s legal team said it will continue parallel federal litigation against the responsible parties while working with engineering consultants to estimate costs and design the recommended remedy.

During the presentation, attorney David Simmons (who was introduced by staff) outlined the history: FDEP issued a report on Dec. 17, 2024 concluding the responsible parties caused migration of contamination from the 400 Reinhardt Road area; the city and its consultants have pursued more robust remedial solutions than initially proposed; and mediation produced terms the city manager and mayor described as favorable.

Mayor Art Woodruff and commissioners asked for clarification about the effect of approving the settlement. City staff and counsel said approval would authorize the city to accept the settlement terms so FDEP would sign the construction loan agreement; after that step the city would complete design and cost estimates with retained experts and the consultant Cornell/Corolla engineers (referenced in the staff presentation). Staff estimated the FDEP commitment at approximately $50 million but said the loan and any forgiveness depend on final funding availability and subsequent technical approvals.

The commission moved, seconded, and approved the settlement. Commissioners and staff characterized the agreement as the result of months of work with state regulators and said it positions Sanford to proceed with construction of a treatment facility intended to remove 1,4‑dioxane and other contaminants from the affected water system.

What happens next: staff said the city will receive the executed construction loan agreement from FDEP after the commission’s approval, continue federally filed litigation against responsible parties, and coordinate detailed engineering and cost estimates with retained experts before construction procurement. The settlement document as presented conditions FDEP’s final execution of the loan on the commission’s approval.

The commission record shows the motion carried with all present voting in favor; no amendments were proposed on the floor.

Ending: City staff and outside counsel described the approval as a milestone that should allow the city to move from dispute and study toward design and construction; the timetable and final cost share remain contingent on technical work and FDEP funding commitments.